2/15. The Senate Finance Committee (SFC) held a hearing titled "The Administration's 2007 Trade Agenda" on Thursday morning, February 15. U.S. Trade Representative (USTR) Susan Schwab testified, answered questions, and spoke with reporters afterwards.

At the same time, the House Ways and Means Committee's (HWMC) Subcommittee on Trade held a hearing titled "Trade with China". Deputy USTR Karan Bhatia and industry representatives testified. Also, on February 14, the full HWMC held a hearing titled "U.S. Trade Agenda".

The SFC held a long hearing. However, most Senators left early for a series of roll call votes in the Senate, after which they proceeded to party meetings. Much of the hearing consisted of exchanges and debate between Sen. Max Baucus (D-MT), the Chairman of the SFC, and USTR Schwab. It was often confrontational, but civil.

Sen. Baucus (at left) stated that this hearing was about "what should the conditions be under which the Congress" extends trade promotion authority (TPA). He asked Schwab what the Bush administration is doing to help the Congress understand why it should extend TPA. She responded by discussing the benefits of the trade agreements already negotiated, and the likely benefits of future trade agreements.

Sen. Baucus said that she was not answering the question, and that she was just going through agreements. He said that the Congress need to hear more about enforcement and revising trade adjustment assistance.

Sen. Baucus stated that in the future FTAs "must raise labor standards" of other countries. Schwab said that this has been the effect of all FTAs negotiated in the past five years, and that FTAs without labor standards provisions still raise labor standards.

Sen. Baucus suggested that the Congress retain the power to limit the countries with which the USTR could negotiate FTAs. Schwab argued that Congress already has leverage under TPA through its power to reject FTAs. Sen. Baucus differed, arguing that by then "it is way too late".

Schwab came back with the argument that the OUSTR consults "day in and day out" with the Congress on FTAs. Sen. Baucus said that the sense in the Congress is that the cooperation has to be better.

He also stated that there is a sense that the administration only does just enough to squeeze out a one vote win on FTAs. Schwab argued that there is consultation, and that it is two way.

Sen. Baucus argued that the administration was not doing enough on enforcement. He argued that the administration is not using Section 421 safeguards, and is losing Congressional trust as a result. Schwab argued that in each Section 421 case the administration found that enforcement was "not in the national economic interest".

Sen. Baucus also discussed IPR enforcement in the People's Republic of China. Schwab said that "there are serious enforcement problems". Sen. Baucus said that "this has been going on for years and years", and that it is "getting embarrassing".

Schwab said that there is a potential to bring cases before the World Trade Organization (WTO).

Sen. Charles Grassley (R-IA) and Sen. Pat Roberts (R-KS) both raised agricultural issues, particularly with respect to beef and pork exports. The two both raised the subject of Russia's accession to the WTO in light of Putin's recent speeches. Sen. Grassley referred to this as "Putin's re-Sovietization".

Sen. Maria Cantwell (D-WA) asked one question about the necessity of extending TPA.

Sen. Debbie Stabenow (D-MI) expressed concern about the FTA being negotiated with Korea, and how it will address automobiles and appliances. She also expressed concern about counterfeiting of parts.

Sen. Ken Salazar (D-CO) and Sen. Jim Bunning (R-KY) both attended, but did not speak.

Schwab also spoke with reporters after the SFC hearing about whether and when the OUSTR will file an IPR related case with the WTO against China. She said that this is "a frustrating topic because, because the easiest thing that we can do as an administration is file an IP case. I mean, it is easy to file an IP case."

She continued that "we are ready to do that. It is easy to file an IP case. It isn't easy to solve the IP problem. So, we walk a very fine line. We want to give a chance, and the US industry is prepared to let us try to resolve, really resolve, the intellectual property rights, and market access related intellectual property rights, problems that we face in China, before we file, or instead of filing. If we can't do that, we have to file".

She was asked "Is there a deadline on that?"

"There is no formal deadline", she responded. "But at some point you say, we are not getting, we are not getting there by negotiation, we really need to do something."

She concluded that "there are clearly individuals in leadership positions in China who believe that it is in China's own best interest to have effective intellectual property rights protection. There is no question about that. And so, will they win, and will the laws be improved, will the laws be enforced, and a lot of it is an enforcement issue. Or, are we going to continue to see this deterioration in IP protection in China."

She also discussed trade adjustment assistance. She said that President Bush wants to extend it. She also noted that there is a debate regarding shy the government should give special treatment to people who have lost their jobs because of trade, and not because of other causes, such as new technologies.

Karan Bhatia, a Deputy USTR, wrote in his prepared testimony for the HWMC that "Over the past year, we have been working to prepare a WTO case that challenges China’s compliance with its WTO obligations in the area of intellectual property rights enforcement. Last October, we informed China that we would be filing such a case, but then agreed to hold off, with the support of U.S. industry, when China asked for further bilateral discussion. We have been holding those discussions, including late last month in Beijing. We have also been raising with China restrictions on market access. While these are not IPR issues per se, they have a negative impact on the industries depending on intellectual property, such as the copyright industry and, to a certain extent, they exacerbate some of the problems with IPR enforcement."

Bhatia (at right) wrote that "Thus far, no settlement has been reached. We are consulting with Congress and with industry on next steps. If we believe that negotiations offer a reasonable chance of success, we will continue to pursue them -- a successfully negotiated outcome can be more efficient and as successful as a litigated outcome. But if it becomes clear that negotiations will not be successful, then we will proceed with WTO dispute settlement."

He also asserted that "It bears noting that at the highest levels of the Chinese government there is a clearly stated commitment to tackle this problem. In his remarks from the South Lawn of the White House in April, President Hu affirmed that China is committed to ``strengthening the protection of intellectual property rights.´´ China's leadership appears to recognize that the development of a more vigorous and effective IPR enforcement system is critical not only to trade relations with the United States, but also to China’s own economic development."

Dan Glickman, head of the Motion Picture Association of America (MPAA), wrote in his prepared testimony that "China is the most difficult market in the world for the US motion picture industry. It is impossible to travel to one of China’s major cities and not encounter street hawkers pushing pirated versions of the latest US movies. More than 9 of every 10 DVDs in the China market is fake."

However, he added that "fake Olympic-logo materials are impossible to find. The government has made it abundantly clear that it will not tolerate Olympic rip-offs, and it has enforced that edict, effectively. In sum, when the Chinese authorities want to protect intellectual property, they can."

"While you can see virtually any US film you want in China, in pirated form, the legitimate market is one of the world’s most restricted", said Glickman."The Chinese government decides which US films Chinese audiences will see, when they will see them, and dictates the terms of getting those films into China."

China "has met neither its unilaterally announced objectives nor its international obligations", said Glickman.

Patricia Schroeder, head of the Association of American Publishers (AAP), wrote in her prepared testimony that "Book piracy manifests itself in a number of different forms in China. Illegal commercial scale photocopying of academic materials is the industry's most immediate concern. Print piracy (unauthorized reprints approximating the quality and appearance of the original) and illegal translations have profound effects on the market as well." (Parentheses in original.)

She continued that ""Web sites offering free book downloads are thriving. These books in most cases do not originate in electronic form, but are scanned versions of hard cover books. Sites offering pay or free downloads join traditional peer to peer trading sites as serious threats to the book market. Too often, takedown notices are ignored and government action against these operations is slow."

He added that there is "trademark counterfeiting, especially with regard to books produced by university presses, misleads Chinese consumers."

Finally, like the MPAA's Glickman, she testified that government not only allows theft, but blocks access to the market by legitimate publishers. She wrote that "All of this is exacerbated by market access barriers that deny foreign publishers the ability to freely import into the Chinese market, distribute their own materials, obtain local Chinese book publication numbers or print for the local market."

Geralyn Ritter, of the Pharmaceutical Research and Manufacturers Association (PhRMA), said that "China is believed to be the world’s leading exporter of counterfeit drugs"

See also, prepared testimony of Peter Baranay (ABRO Industries), prepared testimony of John Goodish (United States Steel), prepared testimony of Franklin Vargo (National Association of Manufacturers), prepared testimony of John Bassett (Vaughan-Bassett Furniture Company), prepared testimony of James Tyrone (NewPage Corporation), and prepared testimony of Peter Navarro (University of California at Irvine).

On February 14, 2007, the HWMC held a hearing titled "U.S. Trade Agenda". See, prepared testimony of USTR Schwab, which was substantially identical to her prepared testimony for the SFC on February 15.

2/14. The Senate Judiciary Committee (SJC) held a hearing titled "Judicial Security and Independence". Sen. Patrick Leahy (D-VT), the Chairman of the SJC, addressed the physical security of courts and judges, and S 378, the "Court Security Improvement Act of 2007", in his opening statement. In contrast, Supreme Court Justice Anthony Kennedy testified about judges' pay.

Justice Kennedy wrote in his prepared testimony that "judges throughout the United States are increasingly concerned about the persisting low salary levels Congress authorizes for judicial service. Members of the federal judiciary consider the problem so acute that it has become a threat to judicial independence."

He continued that "Between 1969 and 2006, the real pay of district judges declined by about 25 percent. In the same period, the real pay of the average American worker increased by eighteen percent. ... If judges' salaries had kept pace with the increase in the wages of the average American worker during this time period, the district judge salary would be $261,000."

Sen. Richard Durbin (D-IL) wrote in his opening statement that "we have heard extreme statements from political ideologues and even attempts by some members of Congress to punish federal judges for their decisions." He referenced an televised interview of former Rep. Tom DeLay (R-TX).

Sen. Durbin added that "It is one thing to criticize a judicial opinion with which we disagree, and another thing to threaten judges with impeachment, to try and strip them of their authority to hear certain types of cases, and to subject them to the whims of a politicized inspector general."

On January 31, 2007, Rep. James Sensenbrenner (R-WI) introduced HR 785, and Sen. Charles Grassley (R-IA) introduced S 461. Both bills are titled "Judicial Transparency and Ethics Enhancement Act of 2007". Both would provide an Inspector General for the judicial branch.

See also, prepared testimony of Judge Brock Hornby (U.S. District Court for the District of Maine) regarding S 378, and prepared testimony of John Clark (Director of the U.S. Marshals Service) regarding court security.

2/15. The U.S. Court of Appeals (2ndCir) issued its opinion [PDF] in Starbucks v. Wolfe's Borough, a trademark case. Starbucks Corporation filed a complaint in the U.S. District Court (NYSD) against Wolfe's Borough Coffee, Inc., dba Black Bear Micro Roastery, alleging that its sale of a coffee named "Mr. Charbucks" infringes and dilutes the "Starbucks" trademark for coffee. The District Court entered judgment for Wolfe's Borough on all claims. After the District Court ruled, the Congress amended the Federal Trademark Dilution Act (FTDA) to entitle the owner of a famous distinctive mark to an injunction against the user of a mark that is "likely to cause dilution" of the famous mark. The Congress reacted to the Supreme Court's 2003 opinion [21 pages in PDF] in Moseley v. V Secret Catalogue, Inc., 537 U.S. 418, which construed the FTDA to require a showing of actual dilution, as opposed to a likelihood of dilution. See, story titled "Bush Signs Trademark Dilution Revision Act" in TLJ Daily E-Mail Alert No. 1,464, October 9, 2006. In the present case, the Court of Appeals vacated and remanded. This case is Starbuck Corporation, et al. v. Wolfe's Borough Coffee, Inc., U.S. Court of Appeals for the 2nd Circuit, App. Ct. No. 06-0435-cv, an appeal from the U.S. District Court for the Southern District of New York.

2/15. The Senate Judiciary Committee (SJC) held a business meeting. It began its consideration of S 236, the "Federal Agency Data Mining Reporting Act of 2007". It approved a technical amendment, and held over further consideration until the next business meeting. The SJC also held over consideration of S  378, the "Court Security Improvement Act of 2007", and S 316, the "Preserve Access to Affordable Generics Act", a bill to prohibit brand name drug companies from compensating generic drug companies to delay the entry of a generic drug into the market.

2/15. The House Science Committee (HSC) Subcommittee on Technology and Innovation held a hearing titled "The National Institute of Standards and Technology's Role in Supporting Economic Competitiveness in the 21st Century". See, opening statement of Rep. David Wu (D-OR), the Chairman of the Subcommittee. See, prepared testimony [11 pages in PDF] of William Jeffrey (Director of the National Institute of Standards and Technology), prepared testimony [PDF] of Stan Williams (Hewlett Packard), prepared testimony [12 pages in PDF] of Peter Murray (Welch Allyn), prepared testimony [4 pages in PDF] of Michael Borrus (X/Seed Capital), and prepared testimony [PDF] of Mike Ryan (TUG Technologies).

The House will meet at 9:00 AM. It will continue consideration of a resolution regarding Iraq. See, Hoyer's calendar [PDF].

The Senate will meet at 12:00 NOON.

10:00 AM. The House Appropriations Committee's Subcommittee on Homeland Security will hold a hearing titled "Implementation of U.S. Visit Entry/Exit Program". The witness will be US VISIT Acting Director Mochny. Location: Room 2362A, Rayburn Building.

12:00 NOON - 2:00 PM. The Progress and Freedom Foundation (PFF) will host a panel discussion titled "Allocating the Electromagnetic Spectrum: A Discussion of the M2Z Proposal". The speakers will be Thomas Lenard (PFF), Robert Atkinson (Information Technology and Innovation Foundation), Chris McCabe (CTIA -- The Wireless Association), John Muleta (M2Z Networks), and Lawrence White (New York University). See, PFF release and registration page.. Lunch will be served. Press contact: Amy Smorodin at 202-289-8928 or asmorodin at pff dot org. Location: Room 2105, Rayburn Building, Capitol Hill.

Day one of the National Association of Regulatory Utility Commissioners' (NARUC) winter committee meetings. Location: Renaissance Washington Hotel.

George Washington's Birthday.

The House will not meet on the week of February 19-23. See, House 2007 calendar.

The Senate will not meet on the week of February 19-23. See, Senate 2007 calendar.

The Federal Communications Commission (FCC) and other federal offices will be closed. See, Office of Personnel Management's (OPM) list of federal holidays and 5 U.S.C. § 6103.

The National Press Club will be closed.

Day one of a four day convention titled "Satellite 2007". See, web site. Location: Washington Convention Center, 801 Mount Vernon Place, NW.

Day two of the National Association of Regulatory Utility Commissioners' (NARUC) winter committee meetings. Location: Renaissance Washington Hotel.

2:00 - 4:00 PM. The Department of State's (DOS) International Telecommunication Advisory Committee (ITAC) will meet to prepare advice on U.S. positions for the Organization of American States (OAS) Inter-American Telecommunications Commission's Permanent Consultative Committee I (Telecommunications). See, notice in the Federal Register, January 11, 2007, Vol. 72, Number 7, at Page 1363. Location: undisclosed.

Day two of a four day convention titled "Satellite 2007". See, web site. Location: Washington Convention Center, 801 Mount Vernon Place, NW.

Day three of the National Association of Regulatory Utility Commissioners' (NARUC) winter committee meetings. Location: Renaissance Washington Hotel.

EXTENDED TO MAY 23. Deadline to submit reply comments to the Federal Communications Commission (FCC) in response to its Notice of Proposed Rulemaking (NPRM) in its proceeding titled "In the Matter of Effects of Communications Towers on Migratory Birds". This NPRM [40 pages in PDF] is FCC 06-164 in WT Docket No. 03-187. The FCC adopted this NPRM on November 3, 2006. It released it on November 17, 2006. See, FCC's notice of extension [PDF] (DA 07-72), and notice in the Federal Register, January 26, 2007, Vol. 72, No. 17, at Pages 3776-3777.

Deadline to submit initial comments to the Federal Communications Commission's (FCC) International Bureau (IB) regarding a proposal to remove from the Section 214 Exclusion List those non-U.S. licensed satellites that have been allowed to enter the U.S. market for satellite services pursuant to the procedure adopted in the DISCO II order. See, FCC's Public Notice [4 pages in PDF] (DA 07-100). This proceeding is IB Docket No. 95-118.

10:00 AM. The Supreme Court will hear oral argument in Microsoft v. AT&T, Sup. Ct. No. 05-1056, a petition for writ of certiorari to the U.S. Court of Appeals (FedCir) in a patent infringement case. See, SCUS calendar.

11:30 AM -1:00 PM. The National Science Foundation's (NSF) National Science Board Commission on 21st Century Education in Science, Technology, Engineering, and Mathematics will meet. See, notice in the Federal Register, February 9, 2007, Vol. 72, No. 27, at Page 6297. Location: NSF, 4201 Wilson Blvd., Arlington,  VA.

12:15 PM. The Federal Communications Bar Association's (FCBA) Young Lawyers' Committeee will hold a brown bag lunch titled "The Role of In House Counsel". The speakers will be Robert Branson (Verizon Wireless), Stacy Fuller (DirecTV), Uzoma Onyeije (M2Z Networks), and Sumeet Seam (Discovery Communications). For more information, contact Chris Fedeli at chrisfedeli at dwt dot com, Natalie Roisman at nroisman at akingump dot com, or Tarah Grant at tsgrant at hhlaw dot com. Location: Hogan & Hartson, 555 13th St., NW.

POSTPONED. 6:00 - 8:15 PM. The Federal Communications Bar Association's (FCBA) Engineering and Technical Practice Committee will host a continuing legal education (CLE) seminar titled "Regulating for Innovation". See, registration form [PDF]. The deadline for registrations and cancellations is 5:00 PM on February 19. The prices to attend ranges from $50 to $125. Location: Skadden Arps, 1440 New York Ave., NW.

Day three of a four day convention titled "Satellite 2007". See, web site. Location: Washington Convention Center, 801 Mount Vernon Place, NW.

Day four of the National Association of Regulatory Utility Commissioners' (NARUC) winter committee meetings. Location: Renaissance Washington Hotel.

9:30 AM - 5:00 PM. The Antitrust Modernization Commission (AMC) will meet. The AMC states that "Advanced registration is required." See, notice in the Federal Register, February 2, 2007, Vol. 72, No. 22, at Page 5000. Location: Morgan Lewis, main conference room, 1111 Pennsylvania Ave., NW.

12:15 PM. The Federal Communications Bar Association's (FCBA) Wireless Telecommunications Practice Committee will host a lunch. The deadline for registrations and cancellations is 12:00 NOON on February 20. The price to attend is $15. See, registration form [PDF]. Location: Latham & Watkins, 555 11th St., NW.

2:00 - 4:00 PM. The Department of State's (DOS) International Telecommunication Advisory Committee (ITAC) will meet to prepare advice on U.S. positions for the International Telecommunication Union's (ITU) Telecommunication Standardization Sector Study Group 3 (Tariff and accounting principles including related telecommunication economic and policy issues). See, notice in the Federal Register, January 11, 2007, Vol. 72, Number 7, at Page 1363. Location: undisclosed.

2:00 - 4:00 PM. The American Enterprise Institute (AEI) will hold a panel discussion titled "China's Economic Rise: Opportunity or Threat". The speakers will be Timothy Adams (Under Secretary for International Affairs, Department of the Treasury), Morris Goldstein (Institute for International Economics), Yusuke Horiguchi (Institute for International Finance), Anne Krueger, Stephen Roach (Morgan Stanley), and Desmond Lachman (AEI). See, notice. Location: AEI, 1150 17th St., NW.

2:00 - 6:00 PM. The Department of Commerce's (DOC) Measuring Innovation in the 21st Century Economy Advisory Committee will hold its first meeting. See, notice in the Federal Register, January 31, 2007, Vol. 72, No. 20, at Page 4482. Location: Vista Ballroom, Wyndham Washington Hotel, 1400 M St., NW.

Day four of a four day convention titled "Satellite 2007". See, web site. Location: Washington Convention Center, 801 Mount Vernon Place, NW.

Deadline to submit reply comments in response to the Federal Communications Commission's (FCC) Public Notice [4 pages in PDF] regarding how the FCC should interpret the phrase "remote communities effectively unserved by commercial mobile service", in Section 605(a) of the Warning, Alert, and Response Network (WARN) Act. The WARN Act was enacted in late 2006 a part of the port security bill. It establishes a process for commercial mobile service providers to voluntarily elect to transmit emergency alerts. Section 605(a) establishes a grant program for the installation of technologies in remote communities. This item is FCC 07-4 in PS Docket No. 07-8. See also stories titled "Bush Signs Port Security Bill" in TLJ Daily E-Mail Alert No. 1,469, October 16, 2006, and "House and Senate Approve Port Security Bill With Tech Provisions" in TLJ Daily E-Mail Alert No. 1,461, October 4, 2006.

8:30 AM - 5:30 PM. The U.S.- China Economic and Security Review Commission will meet. See, notice in the Federal Register, February 12, 2007, Vol. 72, No. 28, at Pages 6668-6669. Location: Room 562 Dirksen Building, Capitol Hill.

12:00 NOON - 1:15 PM. The DC Bar Association, Federal Communications Bar Association's (FCBA) Communications Law, Copyright & Digital Rights Management Practice Committee, and the D.C. Chapter of the Copyright Society of the United States will host a brown bag lunch titled "Digital Rights Management and Copy Protection Issues". The speakers will be Adam Goldberg (Pioneer North America), Rob Kasunic (U.S. Copyright Office), Ryan Triplette (Senate Judiciary Committee), Troy Dow (Walt Disney, Co.), Natalie Roisman (moderator, Akin Gump). RSVP to Ben Golant at bgol at loc dot gov or 202-707-9127. See, DC Bar notice. Location: DC Bar Conference Center, B-1, 1250 H St., NW.

Deadline to submit reply comments to the Federal Communications Commission (FCC) in response to the Petition for Declaratory Ruling [8 pages in PDF] regarding number portability submitted by T-Mobile USA and Sprint Nextel Corporation on December 20, 2006. They seek a declaratory ruling that carriers obligated to provide number portability may not obstruct or delay the porting process by demanding information from requesting carriers beyond that required to validate the customer request and accomplish the port. See, FCC's Public Notice [3 pages in PDF] (DA 07-39). This proceeding is WC Docket No. 95-116.

Deadline to submit reply comments to the Federal Communications Commission (FCC) regarding the National Exchange Carrier Association's (NECA) proposed modification of average schedule formulas for interstate settlements. See, FCC's Public Notice [PDF] (DA 07-306). This proceeding is WC Docket No. 06-223.

2/15. The Senate confirmed Judge Randy Smith to be a Judge of the U.S. Court of Appeals (9thCir) by a vote of 94-0. See, Roll Call No. 49.

2/15. The Senate confirmed Marcia Howard to be a Judge of the U.S. District Court for the Middle District of Florida by a vote of 93-0. See, Roll Call No. 50.

2/15. President Bush nominated Timothy DeGiusti to be a Judge of the U.S. District Court for the Western District of Oklahoma. See, White House release.

2/15. President Bush nominated Richard Sullivan to be a Judge of the U.S. District Court for the Southern District of New York. See, White House release.

2/14. The Senate confirmed Nora Fischer to be a Judge of the U.S. District Court for the Western District of Pennsylvania by a vote of 96-0. See, Roll Call No. 47.

2/12. The Senate confirmed John Negroponte to be Deputy Secretary of State. See, Congressional Record, February 12, 2007, at Page S1878.

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